Cyber breach of IRS records

Image By: Sean MacEntee

CNN has reported that the major cyber breach of IRS records that happened recently originated in Russia.  According to the CNN news report over 100,000 people had their tax returns stolen, but just how big of a breach actually occurred hasn’t been determined yet as the IRS’ Criminal Investigation Unit and the Treasury Inspector General for Tax Administration are still conducting their investigation.

On Thursday, May 28 the FBI also opened their own investigation, and the Homeland Security Department was alerted. None of these agencies are discussing their ongoing investigations with the publci. Essentially, what is known is that the Russians have infiltrated the computer systems in both the White House and the State Department. This isn’t the first time that taxpayer data has been released. Taxpayer’s data security has actually been a problem for many years now (since 1997 according to the testimony about IRS Systems Security given before the Committee on Governmental Affairs at the U.S. Senate on Thursday, April 10, 1997). In fact, the IRS even goes so far as to call this their “number one problem.” With this breach, lawmakers on Capitol Hill began demanding answers.

As Rep. Peter Roskam said, “It’s a problem, no matter where it’s coming from.” However, the IRS isn’t alone when it comes to security breaches. Recently, millions of customers at Target, as well as Anthem Blue Cross, Blue Shield have also had their data compromised. Even Turbo Tax temporarily halted their service because of fraud. So, in today’s day and age, it is more important than ever to keep an eye on our private information. There are even some people who claim that things will get worse before getting better.

Regardless of whether the IRS contacted you or not, it is a good idea to sign up for a credit monitoring service. If you are one of the more than 100,000 households that were affected, the IRS will offer you these services for free. This is a significant step to engage in because this stolen information is oftentimes used to open credit card accounts on which the criminals rack up a lot of fraudulent charges. It is important to understand that even this doesn’t give you a full protection but it does provide for some against criminals who are trying to open new lines of credit in your name.